This study explores how founders from marginalized social groups navigate identity threats while advancing their ventures, shedding light on how entrepreneurship can foster inclusion. Through an inductive study of Muslim founders in the West, we examine why and how these founders respond to identity threats and the implications for their identity and ventures. Our findings reveal how marginalized founders leverage creativity and identity work to overcome resource constraints and exclusionary dynamics. These insights offer valuable implications for transforming entrepreneurship into an inclusive and emancipatory force while mitigating its exclusionary dynamics.